Arch Resources Inc (ARCH) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ARCH • US03940R1077

134.83 USD
+0.94 (+0.7%)
At close: Jan 13, 2025
133.13 USD
-1.7 (-1.26%)
After Hours: 1/13/2025, 8:04:00 PM
Fundamental Rating

6

Taking everything into account, ARCH scores 6 out of 10 in our fundamental rating. ARCH was compared to 157 industry peers in the Metals & Mining industry. ARCH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ARCH has a bad growth rate and is valued cheaply. These ratings could make ARCH a good candidate for value investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year ARCH was profitable.
  • In the past year ARCH had a positive cash flow from operations.
  • Of the past 5 years ARCH 4 years were profitable.
  • Each year in the past 5 years ARCH had a positive operating cash flow.
ARCH Yearly Net Income VS EBIT VS OCF VS FCFARCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

1.2 Ratios

  • ARCH's Return On Assets of 7.57% is amongst the best of the industry. ARCH outperforms 80.95% of its industry peers.
  • With an excellent Return On Equity value of 12.43%, ARCH belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
  • ARCH's Return On Invested Capital of 8.85% is amongst the best of the industry. ARCH outperforms 80.27% of its industry peers.
  • ARCH had an Average Return On Invested Capital over the past 3 years of 29.63%. This is significantly above the industry average of 10.48%.
  • The 3 year average ROIC (29.63%) for ARCH is well above the current ROIC(8.85%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROIC 8.85%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ARCH Yearly ROA, ROE, ROICARCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100 150

1.3 Margins

  • The Profit Margin of ARCH (6.69%) is better than 75.51% of its industry peers.
  • ARCH's Profit Margin has improved in the last couple of years.
  • The Operating Margin of ARCH (7.76%) is better than 62.59% of its industry peers.
  • ARCH's Operating Margin has improved in the last couple of years.
  • ARCH has a Gross Margin (17.11%) which is in line with its industry peers.
  • ARCH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
ARCH Yearly Profit, Operating, Gross MarginsARCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • ARCH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, ARCH has more shares outstanding
  • Compared to 1 year ago, ARCH has an improved debt to assets ratio.
ARCH Yearly Shares OutstandingARCH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ARCH Yearly Total Debt VS Total AssetsARCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 4.29 indicates that ARCH is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.29, ARCH is doing good in the industry, outperforming 65.99% of the companies in the same industry.
  • There is no outstanding debt for ARCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Altman-Z 4.29
ROIC/WACC0.79
WACC11.21%
ARCH Yearly LT Debt VS Equity VS FCFARCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

  • A Current Ratio of 2.01 indicates that ARCH has no problem at all paying its short term obligations.
  • The Current ratio of ARCH (2.01) is comparable to the rest of the industry.
  • ARCH has a Quick Ratio of 1.41. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
  • ARCH's Quick ratio of 1.41 is in line compared to the rest of the industry. ARCH outperforms 47.62% of its industry peers.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 1.41
ARCH Yearly Current Assets VS Current LiabilitesARCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. Growth

3.1 Past

  • ARCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.17%.
  • Measured over the past years, ARCH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.55% on average per year.
  • Looking at the last year, ARCH shows a very negative growth in Revenue. The Revenue has decreased by -17.03% in the last year.
  • The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%

3.2 Future

  • Based on estimates for the next years, ARCH will show a decrease in Earnings Per Share. The EPS will decrease by -5.93% on average per year.
  • ARCH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.19% yearly.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARCH Yearly Revenue VS EstimatesARCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
ARCH Yearly EPS VS EstimatesARCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • ARCH is valuated correctly with a Price/Earnings ratio of 13.13.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARCH indicates a somewhat cheap valuation: ARCH is cheaper than 79.59% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.25. ARCH is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 6.77 indicates a rather cheap valuation of ARCH.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCH indicates a rather cheap valuation: ARCH is cheaper than 89.12% of the companies listed in the same industry.
  • ARCH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
ARCH Price Earnings VS Forward Price EarningsARCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 77.55% of the companies in the same industry are more expensive than ARCH, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARCH indicates a rather cheap valuation: ARCH is cheaper than 87.76% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.58
EV/EBITDA 6.26
ARCH Per share dataARCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • ARCH has an outstanding profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as ARCH's earnings are expected to decrease with -5.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.74%, ARCH is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.01, ARCH pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.74, ARCH pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

  • The dividend of ARCH is nicely growing with an annual growth rate of 47.85%!
  • ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
ARCH Yearly Dividends per shareARCH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

5.3 Sustainability

  • ARCH pays out 50.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
ARCH Yearly Income VS Free CF VS DividendARCH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B
ARCH Dividend Payout.ARCH Dividend Payout, showing the Payout Ratio.ARCH Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

Arch Resources Inc

NYSE:ARCH (1/13/2025, 8:04:00 PM)

After market: 133.13 -1.7 (-1.26%)

134.83

+0.94 (+0.7%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05
Earnings (Next)02-13
Inst Owners99.38%
Inst Owner Change-100%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Revenue(TTM)2.68B
Net Income(TTM)179.45M
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
P/S 0.91
P/FCF 11.58
P/OCF 6.2
P/B 1.69
P/tB 1.69
EV/EBITDA 6.26
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROCE 10.52%
ROIC 8.85%
ROICexc 10.16%
ROICexgc 10.16%
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
FCFM 7.87%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Debt/EBITDA 0
Cap/Depr 117.1%
Cap/Sales 6.83%
Interest Coverage 250
Cash Conversion 108.14%
Profit Quality 117.55%
Current Ratio 2.01
Quick Ratio 1.41
Altman-Z 4.29
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%

Arch Resources Inc / ARCH FAQ

What is the fundamental rating for ARCH stock?

ChartMill assigns a fundamental rating of 6 / 10 to ARCH.


Can you provide the valuation status for Arch Resources Inc?

ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.


How profitable is Arch Resources Inc (ARCH) stock?

Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.


What are the PE and PB ratios of Arch Resources Inc (ARCH) stock?

The Price/Earnings (PE) ratio for Arch Resources Inc (ARCH) is 13.13 and the Price/Book (PB) ratio is 1.69.


How sustainable is the dividend of Arch Resources Inc (ARCH) stock?

The dividend rating of Arch Resources Inc (ARCH) is 3 / 10 and the dividend payout ratio is 50.86%.